A federal judge has reinstated two Democratic members of the National Credit Union Administration (NCUA) who were fired by former President Trump. U.S. District Judge Amir Ali, appointed by President Biden, ruled Tuesday that Trump’s April removal of Todd Harper and Tanya Otsuka—both Democratic appointees to the NCUA board—was unlawful.

Judge Ali noted that “the government concedes the President lacked any cause for the terminations,” but the government argued that the President has “absolute authority to remove NCUA Board members at will” and that reinstatement is not an available remedy. Ali rejected this claim, stating that the government’s position “would apply equally to the Chair of the Federal Reserve and FDIC Board members,” which he found “unavailing.”

Trump had previously considered firing Federal Reserve Chairman Jerome Powell but later suggested he would prefer Powell to resign. Ali’s ruling emphasized that “Congress restricted the President’s authority to fire NCUA Board members,” and that judicial precedent allows for their reinstatement.

Ali highlighted the “overlap in powers wielded by the NCUA Board and the Federal Reserve” and their shared role as financial regulators. He concluded that Congress can protect NCUA Board members from at-will removal.

While NCUA board members once served at the president’s pleasure, Congress restructured the agency so members serve fixed, staggered six-year terms with no more than two members from the same political party. This restructuring strengthens their independence from presidential influence.